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-The Above Information Is Available for the Firm ILA Ltd,which

Question 38

Multiple Choice

 Item  Value as at 2010, in millions  Sales revenue 8.902 Operating revenue 9.360 Trading profit before interest and tax 5.360 Operating profit before interest and taxes 3.118 Interest expense 1.361 Operating profit after tax 0.360\begin{array}{|l|l|}\hline \text { Item } & \text { Value as at 2010, in millions } \\\hline \text { Sales revenue } & 8.902 \\\hline \text { Operating revenue } & 9.360 \\\hline \text { Trading profit before interest and tax } & 5.360 \\\hline \text { Operating profit before interest and taxes } & 3.118 \\\hline \text { Interest expense } & 1.361 \\\hline \text { Operating profit after tax } & 0.360 \\\hline\end{array}
-The above information is available for the firm ILA Ltd,which is listed on the Australian Stock Exchange.As a prospective investor in ILA,you are concerned about the level of debt the company has on issue.How far can the earnings of ILA fall before it will be unable to meets its debt obligations?


A) 0.436 0.436
B) 0.480 0.480
C) 0.564 0.564
D) 0.602 0.602

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